CFA CFA Level 1 EAR on the calculator

EAR on the calculator

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    • Avatar of SnippySnippy
      Participant
        • CFA Level 2
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        I didn’t understand what the empty boxes are supposed to be. Can someone clarify this process please?

        Thanks!

      • Avatar of vincenttvincentt
        Participant
          • CFA Level 3
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          This might not follow the sequence of your screen grab but it does the same thing.

          1.
          [2nd] + [ICONV]
          You should see “NOM” which is the nominal rate, key in 10 and press [ENTER].

          2. press arrow down twice till you see C/Y
          type in 12 and press [ENTER] (that’s amount of times to compound a year)

          3. press arrow UP to “EFF”.

          That’s the effective rate, press CPT to get the EAR.

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          The blanks are for the arrow keys. In your example Nom = 10, C/Y = 12 and then you compute EFF. Its probably just as quick to work it out though.

        • Avatar of SnippySnippy
          Participant
            • CFA Level 2
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            2
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            Got it. Thanks @vincentt & @Swift ­čśÇ

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